Nevada redirects $52 million from rural broadband expansion

Nevada has redirected $52 million in pandemic relief funds originally intended for rural broadband expansion. The decision follows reports that contractor Stimulus Inc. would be unable to complete specific connections in the Pahrump area before a federal spending deadline in three months.

The withdrawal of these funds, which represent over a quarter of the $200 million originally designated for broadband, impacts the Pahrump region and threatens a planned broadband hub intended to facilitate further expansion. Britta Appel, director of the Governor’s Office of Science, Information and Technology (OSIT), described the decision as a “challenging decision to make” based on the “totality of the circumstances.”

The $52 million will be reallocated to other state initiatives, including mental health care in jails, food insecurity programs, and multifamily housing development. The state must utilize its remaining $2.7 billion in pandemic relief funds by the end of the year to comply with federal requirements.